Skip to main content
Ratehub logo
Ratehub logo

The best secured credit cards in Canada

Do you have bad credit or no credit? Are you afraid of being denied by a regular credit card application? Find a secured credit card that can help rebuild your credit history or start from scratch.

Compare the best secured credit cards

You can also have a look at this prepaid card

With the KOHO Prepaid Mastercard®, you simply load funds to your no-fee spending and savings account with KOHO and use it to make purchases. While prepaid cards don’t help you build credit like secured cards do, they can teach you how to use a credit limit responsibly and help you earn cash back on every purchase. This card is an ideal choice for those who want to enjoy many of the benefits of a credit card with the low-risk nature of a debit card.

Why Ratehub.ca?

A few things we're proud of

  • 1,200,000

    monthly users

  • 11 years

    young

  • Over 1M

    better choices made

  • Trusted partner

    to Canada’s top financial institutions

Our top picks

Ratehub's top credit card picks

Ratehub logo

What is a secured credit card?

A secured credit card works just like a regular, unsecured credit card, with one exception: it requires an upfront security deposit for activation. Typically, your credit limit will be the same amount as your deposit, so if you put up $600, that will be the limit on your card.

This deposit is for the provider's benefit and acts as a sort of collateral in the event that you don't pay your statement. Because of this, the risk on the providers' end is greatly reduced, and the card is much easier to be approved for as a result. This is the main reason why secured credit cards are ideal for users trying to build or repair their credit.

As you use your secured credit card responsibly, your credit score will improve over time, and eventually you'll have a good enough score to apply and get approved for an unsecured credit card. Depending on your provider, you could be automatically offered an upgrade to an unsecured card, or you may simply have to close your secured account and open a new credit card account somewhere else. Either way, you'll have your security deposit returned to you.

 

How to apply for a secured credit card

Depending on your financial institution, you may not see secured credit cards visibly offered on their website. Many larger banks do offer these cards, but you may have to call them or visit a branch in person to apply. Alternately, smaller financial institutions will typically make their secured credit cards available to apply for online. In this case, the process is quite easy.

  • Select the card you wish to apply for
  • Read the card's terms and conditions and accept
  • Submit your personal information (name, address, social insurance number, employment, etc.)
  • Wait to hear if you're approved. If so, you'll need to deliver your security deposit by cheque or bank transfer to active the card.

In the case that you're not approved, don't jump the gun and apply for another card again immediately. Each credit card application involves a hard credit check, and too many at once will hurt your credit score and further reduce your likelihood of being approved for future cards. With this in mind, wait a period of six months before applying again.

Secured credit card FAQ

If you need any help comparison shopping, read our frequently asked questions below:

Why should I get a secured credit card?


What are the disadvantages of secured credit cards?


What happens to my security deposit?


How long do you have to use a secured credit card?


education centre

Have your credit card questions answered with our education centre

Find your perfect credit card in under 60 seconds - No SIN required

  1. Tell us a bit about yourself

    Answer some questions so we can personalize our recommendations - this won't impact your credit score

  2. Check your eligibility

    We confirm your eligibility with our partner, TransUnion. This will be a ‘soft credit check’ which you can see but lenders cannot

  3. Find your perfect matches

    We show you the cards you’re most likely to want and most likely to get

let's get started

The knowledge bank

A wealth of wealth knowledge delivered right to your inbox

By submitting your email address, you acknowledge and agree to Ratehub.ca‘s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.

About Ratehub.ca

Whether you need a mortgage, credit card, savings account, or insurance coverage, we help you find and compare the best financial products for your specific needs.

When it comes to mortgages, Ratehub.ca is more than just a place to research and compare the best rates. Our goal is to give Canadians the best mortgage experience from online search to close. This means offering Canadians the mortgage tools, information and articles to educate themselves, allowing them to get personalized rate quotes from multiple lenders to compare rates instantly, and providing them with the best online application and offline customer service to close their mortgage all in one place.

Ratehub.ca has been named Canada's Mortgage Brokerage of the Year for four years straight (2018-2021). With over 12 years of mortgage experience, and over $11 billion in mortgages funded, we deliver you the best mortgage experience in Canada.

How does Ratehub.ca make money?

Financial institutions pay us for connecting them with customers. This could be through advertisements, or when someone applies or is approved for a product. However, not all products we list are tied to compensation for us. Our industry-leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.

read more about us